Featured Product

    EC Issues Rules Supplementing MiFIR on Liquidity of Package Orders

    November 28, 2017

    EC published the Commission Delegated Regulation (EU) 2017/2194 on markets in financial instruments with regard to package orders. This regulation supplements the Markets in Financial Instruments Regulation (MiFIR or EU Regulation No 600/2014) and amends European Market Infrastructure Regulation (EMIR or EU Regulation No 648/2012). Regulation (EU) 2017/2194 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union and it shall apply from January 03, 2018.

    Regulation (EU) 2017/2194 specifies the conditions that must be satisfied to ensure that there shall be a liquid market for a package order as a whole (Article 1). It also specifies asset-class-specific criteria for package orders consisting exclusively of interest rate derivatives (Article 2), equity derivatives (Article 3), credit derivatives (Article 4), and commodity derivatives (Article 5). For reasons of consistency and to ensure the smooth functioning of the financial markets, it is necessary that Regulation (EU) 2017/2194 and the provisions laid down in MiFIR, or Regulation (EU) No 600/2014, apply from the same date. Regulation (EU) 2017/2194 is based on the draft regulatory technical standards submitted by ESMA to the EC.

    Package orders are common in all asset classes and may include many different components within the same asset class or across different asset classes. Therefore, package orders may comprise an unlimited number of combinations of components. Accordingly, it is appropriate to adopt a holistic approach in establishing qualitative criteria to identify the package orders that should be considered as standardized and frequently traded and, therefore, as a whole, having a liquid market. To take into account the characteristics of the different types of package orders, those qualitative criteria should include general criteria applicable across all asset classes as well as specific criteria applicable to the different asset classes comprising a package order.

     

    Related Links

    Effective Date: December 18, 2017

    Keywords: Europe, EU, Regulation 600/2014, MiFIR, EMIR, Package Orders, Asset Classes, EC

    Related Articles
    News

    APRA Revises Related Entities Standard for Banks

    APRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.

    August 20, 2019 WebPage Regulatory News
    News

    FSB on Responses to Consultation on Wind-Down of Trading Portfolios

    FSB published responses received to the consultation on the solvent wind-down of the derivatives and trading book portfolio of a global systemically important bank (G-SIB).

    August 19, 2019 WebPage Regulatory News
    News

    FSB Publishes Responses to Consultation on Resolvability Disclosures

    FSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks.

    August 19, 2019 WebPage Regulatory News
    News

    HKMA Revises Implementation Schedule for Initial Margin Rules

    HKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.

    August 16, 2019 WebPage Regulatory News
    News

    HKMA Revises Guideline on Application of Banking Disclosure Rules

    HKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).

    August 16, 2019 WebPage Regulatory News
    News

    ECB Decision on Recognizing Reporting Member States Under AnaCredit

    ECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).

    August 16, 2019 WebPage Regulatory News
    News

    FASB Proposes to Extend CECL Standard Deadline for Certain Entities

    FASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.

    August 15, 2019 WebPage Regulatory News
    News

    IASB Adds Phase Two of IBOR Reform to Its Work Plan

    IASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.

    August 15, 2019 WebPage Regulatory News
    News

    FED Updates Draft Instructions for Proposed FR Y-14 Reporting Forms

    FED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.

    August 15, 2019 WebPage Regulatory News
    News

    FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842

    FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.

    August 15, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3665